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13091 Panama - Investment Incentive Agreement


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13091

 

 

INVESTMENT GUARANTIES

 

 

 

 

Agreement Between the
UNITED STATES OF AMERICA
and PANAMA

 


Signed at Panama City April 19, 2000

 

 

 

 

 

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”

 

PANAMA

Investment Guaranties

Agreement signed at Panama City April 19, 2000;
Entered into force July 12, 2000.

INVESTMENT INCENTIVE AGREEMENT
BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF THE REPUBLIC OF PANAMA
THE GOVERNMENT OF THE UNITED STATES OF AMERICA and THE GOVERNMENT
OF THE REPUBLIC OF PANAMA;
AFFIRMING their common desire to encourage economic activities in the
Republic of Panama that promote the development of the economic resources and
productive capacities of the Republic of Panama; and
RECOGNIZING that this objective can be promoted through investment
support in the form of investment insurance and reinsurance, debt and equity
investments, and investment guaranties provided by the Overseas Private
Investment Corporation ("OPIC"), a development institution and an agency of the
United States of America which agency is created by the Congress of the United
States of America pursuant to the Foreign Assistance Act of 1961, as amended;
HAVE AGREED as follows:
ARTICLE 1
As used in this Agreement, the following terms have the meanings herein
provided.
The term "Investment Support' refers to any debt or equity investment, any
investment guaranty and any investment insurance or reinsurance which is provided
by the Issuer in connection with a project in the territory of the Republic of
Panama.
The term "Issuer" refers to OPIC and any successor agency of the United
States of America, and any agent of either.
The term "Taxes" means all present and future taxes, levies, imposts,
stamps, duties and charges, whether direct or indirect, imposed in the Republic of
Panama and all liabilities with respect thereto.
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ARTICLE 2
The two Governments confirm their understanding that the Issuer's activities are
governmental in nature and therefore:
(a) The Issuer shall not be subject to regulation under the laws of the
Republic of Panama applicable to insurance or financial organizations, but, in the
provision of Investment Support, shall be afforded all rights and have access to all
remedies of any such entity, whether domestic, foreign, or multilateral.
(b) The Issuer, its assets, property, income, and its operations and
transactions authorized by this Agreement shall be immune from all Taxes, as well
as from liability for the collection and payment of any Taxes.
(c) If the Issuer makes a payment to any person or entity, or exercises
its rights as a creditor or subrogee, in connection with any Investment Support, the
Government of the Republic of Panama shall recognize the transfer to, or
acquisition by, the Issuer of any cash, accounts, credits, instruments, or other assets
in connection with such payment or the exercise of such rights, as well as the
succession of the Issuer to any right, title, claim, privilege, or cause of action
existing, or which may arise, in connection therewith. To the extent that the laws
of the Republic of Panama partially or wholly invalidate or prohibit the acquisition
by the Issuer of any interest in any property, including real property, within the
territory of the Republic of Panama by the Issuer, the Government of the Republic
of Panama shall permit the Issuer to make appropriate arrangements pursuant to
which such property interests are transferred to an entity that is permitted to own
such interests under the laws of the Republic of Panama.
(d) With respect to any interests transferred to the Issuer or any interests
to which the Issuer succeeds under this Article, the Issuer shall assert no greater
rights than those of the person, natural or legal, from whom such interests were
received, provided that nothing in this Agreement shall limit the right of the
Government of the United States of America to assert a claim under international
law in its sovereign capacity, as distinct from any rights it may have as the Issuer
pursuant to paragraph (c) of this Article.
ARTICLE 3
(a) Amounts in the currency of the Republic of Panama, including cash,
accounts, credits, instruments, or otherwise, acquired by the Issuer upon making a
payment, or upon the exercise of its rights as a creditor, in connection with any
Investment Support for a project in the Republic of Panama, shall be accorded
treatment in the territory of the Republic of Panama no less favorable as to use and
conversion than the treatment to which such funds would have been entitled in the
hands of the person or entity from which such amounts were acquired.
3
(b) Such currency and credits may be transferred by the Issuer to any
person or entity and upon such transfer shall be freely available for use by such
person or entity in the territory of the Republic of Panama in accordance with its
laws.
ARTICLE 4
(a) Any dispute between the Government of the United States of
America and the Government of the Republic of Panama regarding the
interpretation of this Agreement or which, in the opinion of either party hereto,
presents a question of international law arising out of any project or activity for
which Investment Support has been provided shall be resolved, insofar as possible,
through negotiations between the two Governments. If, six months following a
request for negotiations hereunder, the two Governments have not resolved the
dispute, the dispute, including the question of whether such dispute presents a
question of international law, shall be submitted, at the initiative of either
Government, to an arbitral tribunal for resolution in accordance with paragraph (b)
of this Article.
(b) The arbitral tribunal referred to in paragraph (a) of this Article shall
be established and shall function as follows:
(i) Each Government shall appoint one arbitrator. These two
arbitrators shall by agreement designate a president of the tribunal who shall be a
citizen of a third state and whose appointment shall be subject to acceptance by the
two Governments. The arbitrators shall be appointed within three months, and the
president within six months, of the date of receipt of either Government's request
for arbitration. If the appointments are not made within the foregoing time limits,
either Government may, in the absence of any other agreement, request the
Secretary-General of the International Centre for the Settlement of Investment
Disputes to make the necessary appointment or appointments. Both Governments
hereby agree to accept such appointment or appointments.
(ii) Decisions of the arbitral tribunal shall be made by majority
vote and shall be based on the applicable principles and rules of international law.
Its decision shall be final and binding.
(iii) During the proceedings, each Government shall bear the
expense of its arbitrator and of its representation in the proceedings before the
tribunal, whereas the expenses of the president and other costs of the arbitration
shall be paid in equal parts by the two Governments. In its award, the arbitral
tribunal may reallocate expenses and costs between the two Governments.
(iv) In all other matters, the arbitral tribunal shall regulate its own
procedures.
ARTICLE 5
(a) This Agreement shall enter into force on the date on which the
Government of the Republic of Panama notifies the Government of the United
States of America that all legal requirements for entry into force of this Agreement
have been fulfilled. Upon so entering into force, this Agreement shall replace and
supersede the Agreement between the United States of America and the Republic
of Panama on the Guaranty of Private Investments, effected by exchange of notes
signed at Washington, January 23, 1961, and any matter relating to Investment
Support or otherwise pending under such agreement shall be treated or disposed of
under the terms of this Agreement.
(b) This Agreement shall continue in force until six months from the
date of a receipt of a note by which one Government informs the other of an intent
to terminate this Agreement. In such event, the provisions of this Agreement shall,
with respect to Investment Support provided while this Agreement was in force,
remain in force so long as such Investment Support remains outstanding, but in no
case longer than twenty years after the termination of this Agreement.
IN WITNESS WHEREOF, the undersigned, duly authorized by their respective
Governments, have signed this Agreement.
DONE at Panama City, Panama, on the 19th day of April 2000, in duplicate,
in the English and Spanish languages, both texts being equally authentic.
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FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA:
FOR THE GOVERNMENT OF
THE REPUBLIC OF PANAMA:



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